NEW YORK / Content Syndication Services / – Wall Street closed higher Monday as chip and artificial intelligence stocks led gains in major U.S. indexes. The S&P 500 rose 0.72% to 7,537.43. The Nasdaq Composite advanced 1.12% to 26,121.16. The Dow Jones Industrial Average added 0.29% to 53,055.91, finishing at a record. The advance followed a rebound in semiconductor shares after recent losses in several AI-linked names.
Broadcom climbed 3.7% after extending a custom chip supply and development agreement with Apple through 2031. The move helped lift the broader semiconductor group. The Philadelphia Semiconductor Index rose 2.2% after two losing sessions. The S&P 500 information technology sector gained 1.3%, making it one of the main contributors to the day’s advance. Chip stocks carried much of the session’s strength.
The gains did not reach every part of the market. Declining stocks outnumbered rising stocks within the S&P 500 by about 1.3 to 1. That split showed the day’s rise centered on large technology and semiconductor shares. Small-cap stocks also gained, with the Russell 2000 rising 0.4% to 3,009.54. Trading volume on U.S. exchanges totaled 16.8 billion shares, below the recent 20-session average of 23.4 billion.
Chip stocks lead advance
The S&P 500 has gained about 10% in 2026 after Monday’s close. It remained about 1% below its record closing high from June 2. The Nasdaq also rose as investors returned to AI-related shares. Semiconductor stocks have played a major role in U.S. market moves this year. Recent trading has shown sharp swings in the sector, including losses in chip names before Monday’s rebound.
Economic data gave investors another point of reference. The Institute for Supply Management said its non-manufacturing purchasing managers index slipped to 54.0 in June. That reading matched market expectations and stayed above the 50 level that signals expansion. Investors also tracked Treasury yields and oil prices, which eased during the session. Those moves helped frame the day’s broader financial market backdrop.
Earnings season in focus
Major U.S. companies are preparing to release second-quarter results. Analysts expect S&P 500 companies to post a 24% rise in earnings from a year earlier, based on market estimates. Technology sector earnings carry higher expectations, with forecasts pointing to growth near 65%. Those figures placed added attention on AI, chip and cloud-related businesses as earnings reports begin across the market.
Some individual shares moved against the broader rise. Microsoft fell almost 1% after announcing plans to cut about 4,800 jobs, equal to around 2.1% of its workforce. SpaceX dipped 1% in heavy trading ahead of its scheduled addition to the Nasdaq 100 on Tuesday. O’Reilly Automotive fell 6.7%, while Genuine Parts lost about 3%. The mixed stock moves showed a market led by technology strength rather than broad gains.